02/9/2024
On August 26th, 2024, the Brazilian Securities and Exchange Commission (CVM) published CVM Resolution 210, which establishes rules and procedures for the portability of investments in securities, and CVM Resolution 209, which makes specific changes to other rules and complements CVM Resolution 210.
According to CVM President João Pedro Nascimento, these rules “are part of the materialization of Open Capital Markets within CVM’s regulatory framework, as a way of empowering investors and modernizing the Capital Markets ecosystem. Through Digital Finance, we are improving the dynamics of investment custody transfer, with rules of conduct and transparency applicable to custodians, intermediaries, central securities depositories, registration entities and securities portfolio managers.”
Between the rules’ main new features, we highlight the following:
- Digital interface for requesting portability, eliminating the need to fill in physical forms or have signatures notarized;
- Possibility for the investor to choose the stage for requesting portability: at origin, at destination or at the central securities depository;
- Transparency in the estimated deadlines for completing portability;
- Scaling deadlines for completing portability, corresponding to the operational complexity of each group of securities;
- Real-time monitoring of the process by the investor; and
- Classification as a serious infraction in cases of systematic non-compliance with deadlines for completing portability, or unjustified delay in portability processing.
During the process of editing the rules, a Regulatory Impact Analysis (AIR) and Public Consultation were carried out, resulting in several changes to the regulatory text, such as the rearrangement of the portability procedures and the provision for the custodian or destination intermediary to act as an assistant to the investor in portability.
CVM Resolutions 209 and 210 come into force on July 1st, 2025, so that institutions have enough time to adapt their interfaces, systems and internal procedures to the new requirements.
The full article, as well as both Resolutions, can be accessed via the following link: https://www.gov.br/cvm/pt-br/assuntos/noticias/2024/cvm-edita-regras-para-portabilidade-de-investimentos-do-mercado-de-capitais.
The Capital Markets team of L.O. Baptista Advogados is available to provide any information and guidance on the subject.
Co authored by: Maria Beatriz Grella Vieira, Louise West and Ana Clara Ferreira Louza
